Question

Cooke Company has the following post-closing trial balance on December 31, 2016:
The company’s accounting department has gathered the following budgeting information for the first quarter of 2017:
Budgeted total sales, all on account ............ $ 308,500
Budgeted direct materials to be purchased and used .... 34,000
Budgeted direct labor cost .............. 13,320
Budgeted manufacturing overhead costs:
Variable manufacturing overhead ........... 2,220
Depreciation .................... 1,200
Insurance and property taxes .............. 1,020
Budgeted cost of goods sold .............. 71,960
Budgeted selling and administrative expenses:
Salaries expense .................... 6,000
Rent expense ................... 4,500
Insurance expense .................. 1,900
Depreciation expense ................ 500
Supplies expense ................. 12,340
Budgeted cash receipts from customers ........ 262,300
Budgeted income tax expense ............ 45,000
Budgeted purchase and payment for capital expenditures
(additional equipment) ................ 37,000
Additional information:
a. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter.
b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred.
Requirements
1. Prepare Cooke Company’s budgeted income statement for the first quarter of 2017.
2. Prepare Cooke Company’s budgeted balance sheet as of March 31, 2017.
3. Prepare Cooke Company’s budgeted statement of cash flows for the first quarter of 2017. The company’s accounting department has gathered the following budgeting information for the first quarter of 2017:


$1.99
Sales6
Views94
Comments0
  • CreatedJune 15, 2015
  • Files Included
Post your question
5000